The present invention relates to a combination chair and bed for small children and includes a back, seat and footrest that are suitably attached to each other such that adjacent of these elements may rotate with respect to each other. A support rod having leg portions spaced apart from each other and an intermediate connecting portion is operatively connected to the back and footrest, and a locking rod is operatively connected to the support rod and to the back such that as the intermediate portion of the locking rod is moved between a plurality of locking positions along the back, the back, seat and footrest assume a variety of different positions, including a position wherein these elements are aligned with each other so as to define a bed, another position wherein these elements are folded or collapsed for storage or carrying, and several additional, intermediate positions wherein these elements are arranged at varying angles to each other to define a variety of sitting positions.